New Venture Proposal: Skin Nurture - Organic Skincare Business Plan

This project outlines a new venture proposal for Skin Nurture, a business focused on customized organic skincare products for the Australian market. The plan includes a lean business model, market analysis highlighting the growing demand for organic skincare, and a competitive analysis using Porter's Five Forces. The organizational structure, financial plan with initial investment and marketing strategies are discussed. Critical risks, alternative courses of action, and a milestone schedule are also detailed. The financial plan includes projected income, expenses, and key metrics. The marketing strategy focuses on brand exclusive stores, online presence, and mobile commerce, targeting working women. The project addresses potential risks such as climate change and social responsibility, and proposes solutions like personalized products and customer relationship management.

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Entrepreneurship
[Type the document subtitle]
10/15/2019
student name

Entrepreneurship 1
Executive summary
The report will consider of the new venture plan for Australian market, for which the business
model, industry analysis, financial plan, and schedule for the activities to be perform would be
conducted in report further. The new venture for this business plan includes customized skincare
organic products. The proposed name of the company would be “Skin Nurture.”
The company will be concentrating towards the customer satisfaction, and consider customer
needs and expectation to the utmost. From key assumptions, presented in preceding table reflect
that the initial investment $170000. The key metrics would include initial response of eh
customer that can be assess through word of mouth, feedback, or the initial sale of the company.

Entrepreneurship 2
Contents
Executive summary.........................................................................................................................1
Introduction - New venture description...........................................................................................3
Lean Business model design............................................................................................................3
Opportunity, market analysis...........................................................................................................5
Competitive analysis........................................................................................................................6
Organization and management........................................................................................................8
Financial plan...................................................................................................................................8
Marketing strategy.........................................................................................................................10
Critical risks Alternative course of action.....................................................................................10
Milestones schedule.......................................................................................................................11
Conclusion.....................................................................................................................................13
References......................................................................................................................................14
Appendix: Financial Plan..............................................................................................................16

Entrepreneurship 3
Introduction - New venture description
Startups are depended on the entrepreneur, design thinking, and the new idea generated and
taken to business level by an entrepreneur. Startup of a new business idea requires various major
plan include decisions to be made for the organization and implementation of the pal. The report
will consider of the new venture plan for Australian market, for which the business model,
industry analysis, financial plan, and schedule for the activities to be perform would be
conducted in report further (Ahlin, 2014).
The new venture for this business plan includes customized skincare organic products. The
proposed name of the company would be “Skin Nurture.” The unique selling proposition of the
company would be that the company will offer the organic skin care products after analyzing the
skin type and relative skin problem area (Baron & Mueller, 2016). Other than this, the focus will
be over providing safe product that would not created by using any chemical product that may
reflect good result for the temporary basis but may hamper the skin for long term. Thus the
company will be concentrating towards the customer satisfaction, and consider customer needs
and expectation to the utmost. However, there could be some of the existing competition of
substitutes that may impact skin nurture’s business, which would be discuss along with the
effective solution in the report further (Ahlin, 2014).
Lean Business model design
Lean business model reflect the proposed business model for the startup that is skin nurture in
this case. This will reflect the major business activities, identified problems and their solution.

Entrepreneurship 4
The major aspect to be considered through lean business model for skin nurture is presented
below:
Designed for: Designed by: Date:
Lean Canvas
Problem Solution Unique Value
Proposition
Unfair
Advantage
Customer
Segments
1. Different
skincare for
different
skin type
2. Skin
damage due
to
environment
al cause
3. Chemical
used in
cosmetic
products
1. Introduction
to exclusive
skin care
combo
2. Customized
product range
2. Organic
ingredients
used
1. Personalization
2. High profit earning
3. Safe to use product
1. Difficult to
imitate the set of
ingredients
2. Analytical power
pertaining to the
skin type and
suitable product
range.
1. High income
group
2. Heavy users
3. Women
4. Working
women
Existing
Alternatives
Key Metrics High-Level
Concept
Channels
1. High end
brands
2. Natural
Homemade
skincare
3. Organic
brands
1. Brand awareness
2. Customer initial
response
3. Sales figure
Customer relation by making
customer shares their skin
type and problem areas so
that the personalized product
combo suitable to their skin
is reached at their doorstep.
1. Physical Stores
2. Online shopping website
3. social media platforms
4. mobile application for
android and IOS
Cost Structure Revenue Structure

Entrepreneurship 5
Research and development
Customer need analysis
Distribution costs
Marketing cost
Return on investment
Initial sale
Profit margin
Opportunity, market analysis
While analysing the market that is the Australian cosmetic industry can be said that there are
various companies working towards organic personal care and cosmetic products within the
nation, however there are various opportunities identified for skin nurture. From the graph below
it can be said that the global organic market share (Amabile & Rigolizzo, 2015)
Considering the product category for 2018 statistics, reflect that the skin care product range has
been considered as maximum market share within the global market. This reflects that the
opportunity for the skin care products to be offered to the customer is very high
(grandviewresearch, 2019). Moreover, the research and development Where the companies has
considered customer needs include more protected and organic products to be used where some
of the global brands include the body shop, Amway and Estee Lauder. These are the global
brands who are working towards the organic product, considering various product categories that
is hair care range, skincare range, cosmetic range and personal care range (Bonaccio & O'Reilly,
2016).
Considering the future forecast it can be said that the increase in awareness among the customer
related to the organic products are found to be increased which may result into increase in
demand of such products in near future. The organic products are responsible for using natural

Entrepreneurship 6
resources instead of chemicals that may damage to skin and hair for long run. Other than this the
distribution channels are also increase along with the growing demand of such products like
through malls, supermarkets and most importantly e-commerce channels. This reflect using
technological distribution channel and off-line mode channel by skin nurture in order to reach
out the customer in Australian Market (Bruns, 2013).
Figure 1: (Source: (grandviewresearch, 2019)
Competitive analysis
For environmental scanning and competitive analysis porter’s five forces model that is one of the
strategic tool can be used for skin nurture.
The first force from the model includes industry rivalry. One of the direct competitions with an
Australian market includes red PR which is one of the top-selling Australian skincare ranges. It
was ranked as one of the cosmetic brand among top five beauty PR firms. The company was
founded in 2000 and was based in New York City (Dewald & Osiyevskyy, 2015).

Entrepreneurship 7
Another major competitor is Bali body, which was founded in 2014 and is considered as
Australian pioneer considering product functionality and product design. Hundred percent
natural ingredients are used that are affected for sensitive skin. This company majorly includes
Luke’s body oils and collection of skincare without considering the season which is going on.
The reason being the company is selling product 365 days and every 45 seconds and also found
to be one of the recognized and preferred Brand in Australia (Huggins & Thompson, 2015).
Threat of substitute, this force include major threat for the company as the customer may be
looking for alternative for expensive organic skin care products from various brands like natural
home-made recipes, which seems to be affective and considered as current trend on social
media’s (Abdulraheem Sal, 2016).
Threat of new entrants, this is also a major threat as the industry does not reflect any major
barriers for entry and exit which increase this thread and also reflect opportunity for skin nurture
to enter into this industry easily.
Bargaining power of buyers, the buyers may have the bargaining power as they are being offered
by various companies and there have large number of choices while making purchasing decision.
However still not sure will offer innovative product and affective services that is to understand
their skin type and problem areas personally and then offering a set of skin care products that
will help them solving the problem and accomplishing their exact need (Coulson-Thomas, 2017).
Bargaining power of suppliers is not much, as the business plan included agile supply chain and
strong supplier relations.

Entrepreneurship 8
Organization and management
Hierarchal organization structure would be adopted in the organization, so as to make the
decision making more effective and approachable. Moreover, the organizational culture includes
working towards innovation and employee engagement. The major aspect of management that
will be considered to execute the business plan or new venture would be recruitment and
selection as competent employees would be helpful for the company to reflect effective
performance (Birasnav, 2014).
Other element that would be considered includes employee training and employee engagement.
It is very difficult to assess the skin nature of every individual, and for which the employees must
be skilled and competent enough to assess the right product for particular customer, for which
the training is one of the major constraint that has to be provided to the employees of skin
nurture. The reason being the customer retention could only be possible if right set of products
are offered to the customer as the product must suit to the customer skin, or it may majorly
impact the brand goodwill and image.
Financial plan
The financial plan include provision for the budget and initial investment, so as to plan the
activities to be perform in the business as per the amount to be invested. From key assumptions,
presented in preceding table reflect that the initial investment $170000. As per the initial
investment, the profit and loss statement on the basis of estimated budget has been prepared and
presented in appendix (Koryak, 2015).

Entrepreneurship 9
Figures in
'00

Entrepreneurship 10
Income sources Sell of skincare products
Number of employees 50 employees
(salary of each employee is $
200.)
Projected investment in equipment and
material
$
1,500.00
Projected R&D cost
$
200.00
$
1,700.00
Depreciation allowed for Machinery and equipment @ 10% (SLM)
Expected rent and rates charges
$
560.00
Creditor days expected and debtor day
allowed Creditors turnover days = 60days
Debtors turnover days = 15 days
start up Expenses calculations Rent Deposit
$
60.00
Furniture & Fixtures
$
100.00
Equipment
$
120.00
Build out/ Renovations
$
120.00
Installation of Fixtures &
Equipment
$
211.00
Starting Inventory
$
700.00
Legal and Other Professional
Fees
$
100.00
License and Permits
$
100.00
Advertising and Promotion
$
90.00
Consulting
$
30.00
$

Entrepreneurship 11
1,631.00
Initial Investment
$
1,700.00
Startup cost
$
1,631.00
Total Investment
$
3,331.00
Marketing strategy
The key metrics would include initial response of eh customer that can be assess through word of
mouth, feedback, or the initial sale of the company. Other than this the social media pages can be
assess, which would reflect the number of views, likes and comments. Initial sales figure would
be another key metrics that may reflect the acceptance of the new venture among the target
customers.
The channels through which the company would be adopting the go to market strategy would be
brand exclusive store, and online website and mobile commerce. The online channel would be
suitable to target the audience as the major interest in such product would be by working women
who must not be getting time to cure the skin and take care of skincare regularly. Thus, the
customer would not be getting much time to shop offline (Okpara, 2017).
Critical risks Alternative course of action
There are various risk involve in the new venture pertaining to environment, social and
competitive risk. Some of the major risk that includes changing climate, which may impact
change in customer needs. Other than this the environmental risk for skin nurture include use of
natural resources like water resources, one of the risk associated with this would be use of water